Core Viewpoint - The competition in the instant retail sector has significantly benefited smaller players, leading to a shift in market dynamics, particularly in the beer industry, where local brands are gaining ground against international giants like Budweiser APAC [7][8]. Group 1: Market Dynamics - Budweiser APAC's revenue in China was surpassed by China Resources Beer in the first half of the year, marking a significant shift in market leadership [8]. - In the first half of 2023, Budweiser APAC's revenue was $3.136 billion, a decline of 5.6% year-on-year, while its net profit fell by 24.4% to $409 million [23][26]. - The high-end beer market share of Budweiser APAC dropped from over 50% to below 40%, as local brands like China Resources Beer and Tsingtao Brewery gained traction [26]. Group 2: Competitive Challenges - Budweiser APAC has faced challenges in the Chinese market, including a 10.3% decline in sales in key provinces, which the company attributed to external factors like weather, although this reasoning was questioned [22]. - The overall beer consumption in China has been declining, with the industry experiencing a 5.7% revenue drop, making it the only negative growth category in the food and beverage sector [23]. - Local competitors have successfully increased their market share, with China Resources Beer achieving a historical high gross margin of 48.9% in the first half of 2025 [26]. Group 3: Strategic Missteps - Budweiser APAC's attempts to appeal to younger consumers have been insufficient, as the company has struggled to adapt to changing consumer preferences and market trends [32][41]. - The company has been slow to innovate, missing opportunities in emerging trends like tea-flavored beer, which gained popularity before Budweiser could effectively respond [37]. - Budweiser APAC's focus on high-end markets and nightlife venues has led to a disconnect with broader consumer bases, particularly in lower-tier cities and new retail channels [39][40].